Rawnoc asks "$130 TO $150 PER BARREL JBII's P2O ??????"

$130 TO $150 PER BARREL JBII's P2O ??????

(1) There are 159 litres of fuel in a barrel of oil:
http://tinyurl.com/2afwtao

(2) Average Ontario, Canada price per litre at the pump = $1/litre:
http://www.ontariogasprices.com/Prices_Nationally.aspx

(3) Subtract gas tax .143 a litre:
http://www.ontariogasprices.com/Can_Tax_Info.aspx

(4) Retailer profit per litre = .035 (3.5)%:
http://www.fin.gc.ca/toc/2005/gas_tax-eng.asp

(5) .822 per litre JBII can sell it for from the blending site. 159 litres * .822 = $130.698 per barrel

Now what if they sell it from the blending site to a NON gas station??????????

Tax-exempt fuel
Coloured fuel is exempt from Ontario fuel tax and may be used for non-taxable purposes only.
http://www.rev.gov.on.ca/en/bulletins/ft/fuel1_2001.html

If so, add back the .143 * 159 = $22.74 per barrel to the $130.698 per barrel for a total of $153.44 per barrel

Raw